Atlantic City residents are looking at a 47 percent increase in municipal property taxes as the city tries to cope with lost casino tax appeals and shrinking land values under a budget introduced by the city’s mayor last week.
Mayor Donald Guardian introduced a $262-million budget—up about $5.5 million over last year—that carries a 65 cent increase per $100 of assessed value for taxpayers.
Of the rate increase, 61 cents is directly related to decreased property values, the mayor said.
The tax increase could be reduced, however. Guardian said the city will apply for $20 million in transitional aid form the state.
“Please make no mistake about it. There’s no guarantee that we’re going to get this $20 Million,” Guardian told city council.
The tax increase would go down to about 45 cents if the entire amount is approved, council was told.
“I really can only present one short-term solution for the future of Atlantic City and the future of South Jersey, because we know how Atlantic City goes, is how South Jersey goes,” said Guardian.
Commenting on the proposed budget, several council members said the city must consider layoffs to reduce spending, especially in the area of public safety.
Guardian also said shared services and recommendations from union presidents would produce approximately $20 million a year in savings in about four years.
But it was the recent lost tax appeals to city casinos that sunk the budget, he said.
The Borgata Hotel Casino & Spa, for example, won a $50 million tax appeal against the city earlier this year that also slashed its assessed value. The win has led to tax appeals by more casinos.
“The assessed values that we’ve lost is like no other city in the state of New Jersey and that’s affecting every municipality in Atlantic County and it’s affecting the county tax rate,” he said. “And most importantly it’s affecting our ability to bring in new development, which is the only way that we can bring sustainable jobs with benefits back to our city.
“We have to find a fair and equitable manner in which casinos pay taxes,” Guardian said. “By 2016 we’ll have that fair market value, but we need to go with some assurances as a city.”
